Galliford Try announces £150m capital raising and 2017 figures

Galliford Try plc has announced today (February 14) that it proposes to raise £150m of new equity capital from its shareholders in the coming weeks and is to provide an update on Galliford Try’s dividend policy.

Galliford Try has separately announced its half year results for the six months to December 31, 2017.

The figures show strong financial and operational performance across all three businesses with good progress being made against the group’s growth plan to 2021.

The government’s stated commitment to the housing market, including Help-to-Buy and the relaxation of stamp duty for first time buyers, is said to be welcome and benefits both Galliford Try’s private and affordable homes businesses.

Galliford Try’s construction business, operating predominantly in the public and regulated sectors, has continued to benefit from a strong order book.

However, the compulsory liquidation of Carillion plc has placed additional financial obligations on the company arising principally from the joint venture with Carillion and Balfour Beatty plc on the Aberdeen Western Peripheral Route contract.

The over-run costs on AWPR, compounded by the compulsory liquidation of Carillion have increased the group’s total cash commitments on the project by in excess of £150m.

But the company is expected to make good progress in resolving both AWPR, the construction of which is expected to complete during summer 2018, and other legacy contracts.

It supposedly has sufficient financial resources to meet its obligations, including the estimated impact of Carillion’s liquidation.

The Group has £550m of debt facilities, comprised of a £450m revolving credit facility which matures in 2022 of which £100m was drawn as at December 31, 2017, and £100m of private placement notes due 2027.

The group will continue with its current gearing policy of year-end net-debt to net assets of no greater than 30 per cent.

In conclusion, the group’s performance during the half year to December 31, 2017 was underlyingly strong.